a) The Oversight Committee shall negotiate on behalf of the
state regarding the awarding of grant funds and enter into a written
contract with the Grant Recipient.
(b) The Oversight Committee may delegate Grant Contract
negotiation duties to the Chief Executive Officer and the General
Counsel for the Institute. The Chief Executive Officer may enter into
a written contract with the Grant Recipient on behalf of the Oversight
Committee.
(c) The Grant Contract shall include the following
provisions:
(1) If any portion of the Grant Contract has been
approved by the Oversight Committee to be used to build a capital
improvement, the Grant Contract shall specify that:
(A) The state retains a lien or other interest in
the capital improvement in proportion to the percentage of the Grant
Award amount used to pay for the capital improvement; and
(B) If the capital improvement is sold, then the Grant
Recipient agrees to repay to the state the Grant Award used to pay
for the capital improvement, with interest, and share with the state
a proportionate amount of any profit realized from the sale;
(2) Terms relating to Intellectual Property Rights
and the sharing with the Institute of revenues generated by the sale,
license, or other conveyance of such Project Results consistent with
the standards established by this chapter;
(3) Terms relating to publication of materials created
with Grant Award funds or related to the Cancer Research or Cancer
Prevention project that is the subject of the Grant Award, including
an acknowledgement of Institute funding and copyright ownership, if
applicable;
(4) Repayment terms, including interest rates, to
be enforced if the Grant Recipient has not used Grant Award funds
for the purposes for which the Grant Award was intended;
(5) A statement that the Institute does not assume
responsibility for the conduct of the Cancer Research or Cancer Prevention
project, and that the conduct of the project and activities of all
investigators are under the scope and direction of the Grant Recipient;
(6) A statement that the Cancer Research or Cancer
Prevention project is conducted with full consideration for the ethical
and medical implications of the project and that the project will
comply with all federal and state laws regarding the conduct of the
Cancer Research or Prevention project;
(7) Terms related to the Standards established by
the Oversight Committee in Chapter 701 of this title (relating to
Policies and Procedures) to ensure that Grant Recipients, to the extent
reasonably possible, demonstrate good faith effort to purchase goods
and services for the Grant Award project from suppliers in this state
and from historically underutilized businesses as defined by Chapter
2161, Texas Government Code, and any other state law;
(8) An agreement by the Grant Recipient to submit
to regular inspection reviews of the Grant Award project by Institute
staff during normal business hours and upon reasonable notice to ensure
compliance with the terms of the Grant Contract and continued merit
of the project;
(9) An agreement by the Grant Recipient to submit
Grant Progress Reports to the Institute on a schedule specified by
the Grant Contract that include information on a grant-by-grant basis
quantifying the amount of additional research funding, if any, secured
as a result of Institute funding;
(10) An agreement that, to the extent possible, the
Grant Recipient will evaluate whether any new or expanded preclinical
testing, clinical trials, Product Development, or manufacturing of
any real or intellectual property resulting from the award can be
conducted in this state, including the establishment of facilities
to meet this purpose;
(11) An agreement that the Grant Recipient will abide
by the Uniform Grant Management Standards (UGMS) adopted by the Governor's
Office, if applicable unless one or more standards conflicts with
a provision of the Grant Contract, Chapter 102, Texas Health and Safety
Code, or the Institute's administrative rules. Such interpretation
of the Institute rules and UGMS shall be made by the Institute;
(12) An agreement that the Grant Recipient is under
a continuing obligation to notify the Institute of any adverse conditions
that materially impact milestones and objectives included in the Grant
Contract;
(13) An agreement that the design, conduct, and reporting
of the Cancer Research or Prevention project will not be biased by
conflicting financial interest of the Grant Recipient or any individuals
associated with the Grant Award. This duty is fulfilled by certifying
that an appropriate written, enforced Conflict of Interest policy
governs the Grant Recipient.
(14) An agreement regarding the amount, schedule,
and requirements for payment of Grant Award funds, if such advance
payments are approved by the Oversight Committee in accordance with
this chapter. Notwithstanding the foregoing, the Institute may require
that up to ten percent of the final tranche of funds approved for
the Grant Award must be expended on a reimbursement basis. Such reimbursement
payment shall not be made until close out documents described in this
section and required by the Grant Contract have been submitted and
approved by the Institute;
(15) An agreement to provide quarterly Financial Status
Reports and supporting documentation for expenses submitted for reimbursement
or, if appropriate, to demonstrate how advanced funds were expended;
(16) A statement certifying that, as of June 14, 2013,
the Grant Recipient has not made and will not make a contribution,
during the term of the Grant Contract, to the Institute or to any
foundation established specifically to support the Institute;
(17) A statement specifying the agreed effective date
of the Grant Contract and the period in which the Grant Award funds
must be spent. If the effective date specified in the Grant Contract
is different from the date the Grant Contract is signed by both parties,
then the effective date shall control;
(18) A statement providing for reimbursement with
Grant Award funds of expenses made prior to the effective date of
the Grant Contract at the discretion of the Institute. Pre-contract
reimbursement shall be made only in the event that:
(A) The expenses are allowable pursuant to the terms
of the Grant Contract;
(B) The request is made in writing by the Grant Recipient
and approved by the Chief Executive Officer; and
(C) The expenses to be reimbursed were incurred on
or after the date the Grant Award recommendation was approved by the
Oversight Committee.
(19) Requirements for closing out the Grant Contract
at the termination date, including the submission of a Financial Status
Report, a final Grant Progress Report, a equipment inventory, a HUB
and Texas Business report, a revenue sharing form, a single audit
determination report form and a list of contractual terms that extend
beyond the termination date;
(20) A certification of dedicated Matching Funds equal
to one-half of the amount of the Research Grant Award that includes
the name of the Research Grant Award to which the matching funds are
to be dedicated, as specified in Section §703.11 of this chapter
(relating to Requirement to Demonstrate Available Funds for Cancer
Research Grants);
(21) The project deliverables as described by the
Grant Application and stated in the Scope of Work for the Grant Contract
reflecting modifications, if any, approved during the Peer Review
process or during Grant Contract negotiation; and
(22) An agreement that the Grant Recipient shall notify
the Institute and seek approval for a change in effort for any of
the Senior Members or Key Personnel of the research or prevention
team listed on the Grant Application.
(23) An agreement that the Grant Recipient is legally
responsible for the integrity of the fiscal and programmatic management
of the organization.
(24) An agreement that the Grant Recipient is responsible
for the actions of its employees and other research collaborators,
including third parties, involved in the project. The Grant Recipient
is responsible for enforcing its standards of conduct, taking appropriate
action on individual infractions, and, in the case of financial conflict
of interest, informing the Institute if the infraction is related
to a Grant Award.
(d) The Grant Recipient's failure to comply with the
terms and conditions of the Grant Contract may result in termination
of the Grant Contract pursuant to the process prescribed in the Grant
Contract and trigger repayment of the Grant Award funds
The agency certifies that legal counsel has reviewed
the adoption and found it to be a valid exercise of the agency's legal
authority.
Filed with the Office
of the Secretary of State on November 17, 2016
TRD-201605892 Heidi McConnell
Chief Operating Officer
Cancer Prevention and
Research Institute of Texas
Effective date: December 7, 2016
Proposal publication date: September 2, 2016
For further information, please call: (512) 463-3190
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